JPMorgan US 100Q Equity Premium Income ETFs Report No Derivative Exposure as of 30 June 2026

JPEQ Records $94.55 Million Net Asset Value at Quarter End

The JPMorgan US 100Q Equity Premium Income Active ETF (ASX:JPEQ) reported a net asset value of $94,553,672.16 as at 30 June 2026, representing the full value against which derivative exposures are measured. This provides investors with a clear benchmark to assess the fund’s size and contextualize its derivative exposure disclosures.

The NAV reflects the total assets minus liabilities at the reporting date. While the update does not specify the portfolio composition at this time, the NAV indicates a fund of significant scale within the ASX active ETF market. Investors should note NAV values may vary significantly over time due to equity price movements and market conditions.

JPHQ Hedged ETF Reports $11.89 Million NAV for June 2026

The JPMorgan US 100Q Equity Premium Income (Hedged) Active ETF (ASX:JPHQ) posted a net asset value of $11,889,946.66 as at 30 June 2026. This hedged version offers Australian investors exposure to the same underlying strategy as JPEQ but mitigates currency risk between the Australian and US dollars.

The smaller NAV compared to JPEQ aligns with common investor preferences, where unhedged funds often attract more assets due to the costs associated with currency hedging potentially reducing net returns. The update did not disclose inflow, outflow, or performance details for the period.

Both Funds Report Zero Notional Derivative Exposure at Period Close

Significantly, both JPEQ and JPHQ reported zero notional listed derivative exposure and zero OTC derivative exposure (excluding FX hedging) as at 30 June 2026. These figures represent 0.00% of each fund’s NAV, indicating no open derivative contracts subject to ASX reporting requirements at quarter end.

It is important to understand that notional derivative exposure refers to the total market value of securities underlying derivative contracts, distinct from any profit or loss on those contracts. A zero reading means no such contracts existed at the reporting date, not that contracts held had no market value.

Use of Equity-Linked Notes and Call Options to Generate Income

Despite the zero derivative exposure reported, both funds are designed to employ derivatives as a core part of their strategy under normal conditions. The underlying fund actively manages an equity portfolio based on its benchmark and utilizes equity-linked notes alongside selling call options on the benchmark.

This approach, known as an equity premium income or covered call strategy, aims to generate additional income from option premiums supplementing dividends from equities. The investment objective is to seek current income while preserving capital appreciation potential. The underlying fund also targets stable monthly distributions, appealing to income-focused investors in JPEQ and JPHQ.

ASX Operating Rule 10A.3.1(e) Requires Regular Derivative Exposure Reporting

This disclosure is made pursuant to ASX Operating Rule 10A.3.1(e), which applies to active ETFs on the ASX that use derivatives. The rule mandates periodic reporting of notional derivative exposure—both listed and OTC (excluding currency hedging)—relative to NAV to improve market transparency and help investors assess leverage and synthetic position risks.

JPMorgan Asset Management (Australia) Limited provided this disclosure on behalf of Perpetual Trust Services Limited, the funds’ responsible entity. This separation of investment manager and issuer is common for ASX-listed managed funds and ETFs under Australian financial services law. The manager holds AFSL number 376919, and the issuer holds AFSL 236648.

No OTC Derivative Exposure Beyond FX Hedging for Either Fund

The report also confirms zero OTC derivative exposure (excluding FX hedging) for both JPEQ and JPHQ as at 30 June 2026. OTC derivatives include instruments like equity swaps, forwards, or structured notes negotiated privately rather than traded on exchanges.

The distinction between listed and OTC derivatives is important for risk evaluation, as OTC contracts carry counterparty risk in addition to market risk. The absence of OTC derivative exposure outside FX hedging may be relevant for investors assessing counterparty risk in these funds.

Currency Hedging in JPHQ Excluded from Derivative Exposure Figures

The update clarifies that currency hedging instruments are excluded from the derivative exposure figures reported. JPHQ, as the hedged version, employs FX hedging to minimize currency impact between AUD and USD on returns.

These FX hedges are not included in the 0.00% derivative exposure numbers, so investors should not interpret the zero reading as the fund lacking any derivative usage. Instead, FX hedging falls outside the scope of this ASX rule. For detailed currency risk management information, investors should consult the Product Disclosure Statement.

Monthly Distributions Cater to Income-Oriented Investors

Both JPEQ and JPHQ aim to provide relatively stable monthly distributions under normal market conditions, differentiating them from many equity ETFs that pay quarterly or annual dividends. This feature may appeal to investors seeking steady cash flow from their investments.

The income generated supplements the equity holdings, balancing current income with capital growth potential. The update did not disclose actual distribution amounts for the June 2026 quarter; investors should refer to separate announcements or the funds’ websites for those details.

Contact Information for Further Inquiries

JPMorgan Asset Management (Australia) Limited invites investors or interested parties to contact them directly at 1800 576 468 for more information. Their office is located at Level 31, 101 Collins Street, Melbourne VIC 3000.

The update emphasizes that the information provided is for general purposes only and is not financial advice, a recommendation, or an offer to buy or sell any financial product. Prospective and current investors are encouraged to review the Product Disclosure Statement and seek independent financial advice before making investment decisions. The disclosure’s immediate impact on share prices was not evident, as such derivative exposure reports are routine compliance updates rather than market-moving events.